Use the following information to answer questions 9-11: Falconi...

50.1K

Verified Solution

Question

Accounting

image
Use the following information to answer questions 9-11: Falconi Company's most recent contribution format income statement is shown below: Total Per Unit $ 400,000 $20.00 Sales (20,000 units) Less: Variable expenses(240,000) (12.00) Contribution margin Less: Fixed expenses (70,000) Net operating income 160,000 S 8.00 $ 90,000 9) What is the company's break-even point in dollar sales? A) $8,750 B) $116,667 C) $175,000 D) $225,000 10) What is the company's margin of safety? A) $90,000 B) $175,000 C) $400,000 D) $225,000 1) If the selling price decreases by $2.00 per unit, andthe sales volume increases by 20%, what would be the new net operating income? A) $70,000 B) $74,000 C) $90,000 D) $80,000 The break-even in units sold will decrease if there is an increase in: A) unit sales volume. B) contribution margin. C) total fixed expenses. D) unit variable expenses

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students